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Old 04-08-2016, 11:10 AM
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Join Date: Apr 2016
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Accrual Sched C and 1099 discrepancies

Hello all!

I had a slow 2015 starting as a contractor.
Some of my contractors did not pay my invoices until just after the New Year.
There will be significantly more income in 2016, so I'd like to use accrual accounting to hold back as much income into 2015 as possible.
However, some of the 1099s I received are too low, since they are counting their late payments as 2016 expenditures.

What are my options?

Thank you!



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Old 04-09-2016, 03:27 AM
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Join Date: Oct 2010
Posts: 5,227
I had a slow 2015 starting as a contractor.
Some of my contractors did not pay my invoices until just after the New Year.
There will be significantly more income in 2016, so I'd like to use accrual accounting to hold back as much income into 2015 as possible.==========>unless yo use accrual metho din your first return, you need to ask the IRS for permission to change accounting method. As a general rule, you use Form 3115 to request a change.
A change in your accounting method includes a change not only in your overall system of accounting but also in the treatment of any material item. A material item is one that affects your income or your ability to take a deduction

However, some of the 1099s I received are too low, since they are counting their late payments as 2016 expenditures.

What are my options?========>>>>>>as mentioned above.



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Old 04-10-2016, 11:47 PM
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Join Date: Apr 2016
Posts: 3
Thanks for the help!

It is my first return, so I'll start with accrual and plan to continue that way.

I have $2750 of 2015 income from this organization, and my 1099 says $2300.

Do I report their $2300 1099 and then put the rest of the money as general business income on my Sched C? Or should I just change their 2300 to my 2750 on the line where I report their 1099?



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